Question 1

To be effective, an internal audit department must report to:

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 2

An audit conducted in accordance with the Yellow Book must include an audit report that states the audit was performed in accordance with:

Accepted Answer

A)  GAAS. 
B)  GAGAS. 
C)  GASA. 
D)  SAS. 
A)  GAAS. 
B)  GAGAS. 
C)  GASA. 
D)  SAS.

Question 3

Which of the following is not a difference between operational auditing and financial auditing?

Accepted Answer

A)  Both must be CPAs. 
B)  Operational audit reports are usually of a restricted distribution while financial audit reports are widely distributed. 
C)  Operational audits often cover non-financial issues while financial audits do not. 
D)  None of the above is a difference. 
A)  Both must be CPAs. 
B)  Operational audit reports are usually of a restricted distribution while financial audit reports are widely distributed. 
C)  Operational audits often cover non-financial issues while financial audits do not. 
D)  None of the above is a difference.

Question 4

Which of the following is not a purpose of a program audit as performed by government auditors?

Accepted Answer

A)  Determination of the extent to which the desired results established by the legislature are being achieved. 
B)  Determination of the causes of inefficiencies in sponsored programs. 
C)  Determination of the effectiveness of organizations, programs and activities. 
D)  Determination as to whether the entity has complied with laws and regulations applicable to the program. 
A)  Determination of the extent to which the desired results established by the legislature are being achieved. 
B)  Determination of the causes of inefficiencies in sponsored programs. 
C)  Determination of the effectiveness of organizations, programs and activities. 
D)  Determination as to whether the entity has complied with laws and regulations applicable to the program.

Question 5

Internal auditors are responsible to:

Accepted Answer

A)  the board of directors. 
B)  management. 
C)  both A and B. 
D)  neither A nor B. 
A)  the board of directors. 
B)  management. 
C)  both A and B. 
D)  neither A nor B.

Question 6

The "Red Book" specifies all auditing standards issued by the U.S. General Accounting Office.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements regarding types of operational audits is likely incorrect?

Accepted Answer

A)  A functional audit has the advantage of permitting specialization by auditors. 
B)  An advantage of functional auditing is its ability to evaluate interrelated functions. 
C)  The emphasis in an organizational audit is on how efficiently and effectively functions interact. 
D)  Special operational auditing assignments arise at the request of management. 
A)  A functional audit has the advantage of permitting specialization by auditors. 
B)  An advantage of functional auditing is its ability to evaluate interrelated functions. 
C)  The emphasis in an organizational audit is on how efficiently and effectively functions interact. 
D)  Special operational auditing assignments arise at the request of management.

Question 8

When performing an operational audit, the internal audit team must first determine that:

Accepted Answer

A)  a financial audit has been performed by an independent auditor. 
B)  a financial audit has been performed by an internal auditor. 
C)  a review was performed by either an independent or an internal auditor. 
D)  specific criteria are developed to define effectiveness. 
A)  a financial audit has been performed by an independent auditor. 
B)  a financial audit has been performed by an internal auditor. 
C)  a review was performed by either an independent or an internal auditor. 
D)  specific criteria are developed to define effectiveness.

Question 9

The Institute of Internal Auditors has established Ethical Principles for its members. List each of the principles.

Accepted Answer

The IIA's ethical pr

Question 10

Which one of the following is NOT a major difference between operational and financial auditing?

Accepted Answer

A)  purpose of the audit 
B)  distribution of the report 
C)  testing the effectiveness of internal controls 
D)  audits of non-financial areas 
A)  purpose of the audit 
B)  distribution of the report 
C)  testing the effectiveness of internal controls 
D)  audits of non-financial areas

Question 11

The formal name of the Yellow Book is Government Auditing Standards.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is most correct regarding external auditors use of internal auditors directly on the audit engagement?

Accepted Answer

A)  discourage 
B)  prohibit 
C)  encourage 
D)  permit 
A)  discourage 
B)  prohibit 
C)  encourage 
D)  permit

Question 13

To help them remain independent of the operations they audit, internal auditors should report directly to the controller.

Accepted Answer

A) True 
 B)False

To be effective, an internal audit department must report to:

An audit conducted in accordance with the Yellow Book must include an audit report that states the audit was performed in accordance with:

Which of the following is not a difference between operational auditing and financial auditing?

Which of the following is not a purpose of a program audit as performed by government auditors?

Internal auditors are responsible to:

The "Red Book" specifies all auditing standards issued by the U.S. General Accounting Office.

Which of the following statements regarding types of operational audits is likely incorrect?

When performing an operational audit, the internal audit team must first determine that:

The Institute of Internal Auditors has established Ethical Principles for its members. List each of the principles.

Which one of the following is NOT a major difference between operational and financial auditing?

The formal name of the Yellow Book is Government Auditing Standards.

Which of the following is most correct regarding external auditors use of internal auditors directly on the audit engagement?

To help them remain independent of the operations they audit, internal auditors should report directly to the controller.

The Demand for Audit and Other Assurance Services

The CPA Profession

Audit Reports

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Filters

Exam 26: Internal and Governmental Financial Auditing and Operational Auditing

To be effective, an internal audit department must report to:

An audit conducted in accordance with the Yellow Book must include an audit report that states the audit was performed in accordance with:

Which of the following is not a difference between operational auditing and financial auditing?

Which of the following is not a purpose of a program audit as performed by government auditors?

Internal auditors are responsible to:

The "Red Book" specifies all auditing standards issued by the U.S. General Accounting Office.

Which of the following statements regarding types of operational audits is likely incorrect?

When performing an operational audit, the internal audit team must first determine that:

The Institute of Internal Auditors has established Ethical Principles for its members. List each of the principles.

Which one of the following is NOT a major difference between operational and financial auditing?

The formal name of the Yellow Book is Government Auditing Standards.

Which of the following is most correct regarding external auditors use of internal auditors directly on the audit engagement?

To help them remain independent of the operations they audit, internal auditors should report directly to the controller.

The Demand for Audit and Other Assurance Services

The CPA Profession

Audit Reports

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Filters